Greg Silverman [twitter:concentricabm], the CEO of Concentric, has a good post at CMS Wire about the democratization of market analysis. He makes what seems to me to be a true and important point: market researchers now have the tools to enable them to slice, dice, deconstruct, and otherly-construct data without having to rely upon centralized (and expensive) analytics firms. This, says Greg, changes not only the economics of research, but also the nature of the results:

The marketers’ relationships with their analytics providers are currently strained as a service-based, methodologically undisclosed and one-off delivery of insights. These providers and methods are pitted against a new generation of managers and executives who are “data natives” —professionals who rose to the top by having full control of their answering techniques, who like to be empowered and in charge of their own destinies, and who understand the world as a continuous, adaptive place that may have constantly changing answers. This new generation of leaders likes to identify tradeoffs and understand the “grayness” of insight rather than the clarity being marketed by the service providers.

He goes on to make an important point about the perils of optimization, which is what attracted the attention of Eric Bonabeau [twitter:bonabeau], whose tweet pointed me at the post.

The article’s first point, though, is interesting from the point of view of the networking of knowledge, because it’s not an example of the networking of knowledge. This new generation of market researchers are not relying on experts from the Central Authority, they are not looking for simple answers, and they’re comfortable with ambiguity, all of which are characteristics of networked knowledge. But, at least according to Greg’s post, they are not engaging with one another across company boundaries, sharing data, models, and insights. I’m going to guess that Greg would agree that there’s more of that going on than before. But not enough.

If the competitive interests of businesses are going to keep their researchers from sharing ideas and information in vigorous conversations with their peers and others, then businesses simply won’t be as smart as they could be. Openness optimizes knowledge system-wide, but by definition it doesn’t concentrate knowledge in the hands of a few. And this may form an inherent limit on how smart businesses can become.